Shenghe Resources guarantees $100m financing for subsidiary

Shenghe Resources Holding Co., Ltd. announced a RMB 100,000,000 financing guarantee for Sichuan Leshan Kebairui New Material Co., Ltd. (Kebairui), a wholly-owned sub-subsidiary. This guarantee, issued in August 2025, falls within the RMB 450,000,000 guarantee limit approved at the 2024 annual shareholders' meeting, representing 46.64% of the company's net assets as of the 2024 audited figures. As of August 31, 2025, the total financing guarantee balance provided by Shenghe Resources and its controlled subsidiaries for Kebairui amounts to RMB 130,000,000. Kebairui has provided counter-guarantees for this arrangement.

The guarantee is a joint and several liability, with a term of three years from the maturity date of each principal debt. The scope includes principal, interest, penalties, liquidated damages, and all related costs incurred by the creditor. This move is deemed necessary and reasonable to support Kebairui's capital requirements, foster its development, and align with the company's overall operational strategy.

Shenghe Resources' board believes that Kebairui possesses sufficient repayment capacity, and the financial risks are controllable, safeguarding the interests of the company and its shareholders. The total cumulative financing guarantee balance for controlled subsidiaries and inter-subsidiary guarantees, including the latest, stands at RMB 279,200,000, accounting for 28.94% of the company's latest audited net assets. There are no overdue external guarantees.